Chapter 16: Controlling And Such Flashcards Preview

MGMT 110 > Chapter 16: Controlling And Such > Flashcards

Flashcards in Chapter 16: Controlling And Such Deck (45)
Loading flashcards...
1
Q

Controlling

A

Monitoring performance, comparing it with goals, and taking corrective action when needed

2
Q

Six reasons why control is needed

A

1) to adapt to change and uncertainty
2) to discover irregularities and errors
3) to reduce costs, increase productivity, or add value
4) to detect opportunities or increase innovation
5) to provide performance feedback
6) to decentralize decision making, and facilitate teamwork

3
Q

Control process steps

(4 steps)

A

1) establish standards
2) measure performance
3) compare performance to standards
4) take corrective action if needed

4
Q

Control standard

A

The first step in control process

The desired performance level for a given goal

5
Q

Control charts

A

Visual statistical tool used for quality control purposes

6
Q

Management by exception

A

Control principle that states managers should be informed of a situation only if data show a significant deviation from standards

7
Q

Feedforward control

A

Focussed on preventing future problems

8
Q

Concurrent Control

A

Entails collecting performance information in real time

9
Q

Feedback control

A

Amounts to collecting performance information after a task or project is done

10
Q

3 levels of control

A

Strategic control by top managers

Tactical control by middle managers

Operational control by first line managers

11
Q

Strategic control

A

Monitoring performance to ensure that strategic plans are being implemented and taking corrective action when needed

12
Q

Tactical control

A

Motiniroing performance to ensure that tactical plans - those at the divisional or department level - are being implemented and taking corrective action as needed

13
Q

Operational control

A

Monitoring performance to ensure that operational plans - day to day goals - are being implemented and taking corrective action wheh needed

14
Q

Six areas of control

A
Physical 
Human 
Informational
Financial 
Structural 
Cultural
15
Q

Physical area

A

Includes buildings, equipment, and tangible products

16
Q

Human resource area

A

Monitor employees personality tests l, drugs tests, performance tests, job satisfication

17
Q

Informational area

A

Production schedules
Sales forecasts
Analyses of competition
Public briefings

18
Q

Financial area

A

What’s the advertising budget, how much is owed, is there enough cash on hand

19
Q

Structural area

A

Who reports to who

2 types: beaurocratic and decentralized

20
Q

Bureaucratic control

A

The use of rules, regulations, formal authority to guide performance

21
Q

Decentralized control

A

An approach to organizational control that is characterized by informal and organic structural arrangements, opposite of bureaucratic control

22
Q

Supply chain

A

Sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers

23
Q

Budget

A

Formal financial projection

24
Q

Incremental budgeting

A

Allocating increased productivity decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed

25
Q

Fixed budget

A

Allocation of resources on the basis of a single estimate of costs for

26
Q

Variable budget

A

Allowing the allocation of resources to vary in proportion with various levels of activity

27
Q

Financial statement

A

Summary of some aspect of an organizations financial status

28
Q

Balence sheet

A

Summary of an organizations overall financial worth - assets and liabilities - at a specific point in time

29
Q

Income statement

A

Summary of an organizations financial results - revenues and expenses - over a specified period of time

30
Q

Audits

A

Formal certifications of an organizations financial and operational systems

31
Q

External audit

A

Formal verification by outside experts of an organization’s financial accounts and statements

32
Q

Internal audit

A

A verification of an organizations financial accounts and statements by the organizations own professional staff

33
Q

Deming management

A

Ideas proposed by W. Edwards for making organizations more responsive, more democratic, and less wasteful

34
Q

PDCA cycle

A

Plan-do-check-act cycle using observed data for continuous improvement of operations

35
Q

Total quality management (TQM)

A

A comprehensive apporach - led by top management and supported throughout the organization - dedicated to continuous quality improvements , training, and customer satisfaction

36
Q

Two core principles of TQM

A

1) people orientation: everyone involved with the organization should focus on delivering value to customers
2) improvement orientation: everyone should work on continuously improving the work processes

37
Q

Continuous improvement

A

Ongoing, small, incremental improvements in all parts of an organization

38
Q

Kaizen

A

Japanese philosophy of small continuous improvements that seek to involve everyone at every level of the organization

39
Q

Outsourcing

A

Using suppliers outside the company to provide goods and services

40
Q

Reduced cycle time

A

The reduction of steps in the work process

41
Q

Statistical process control

A

Periodic random samples from production runs to see if quality of being maintained within a range of acceptability

42
Q

Six sigma

A

Rigorous statistical analysis process that reduces defects in manufacturing and service related industries

3.4 defects per million

43
Q

Lean six sigma

A

Quality control approach that focussed on problem solving and performance improvements - speed with excellence - of a well defined project

44
Q

ISO 9000 series

A

Quality control process companies must install - from purchasing to manufacturing to inventory shipping - that can be audited by independent quality control experts

45
Q

ISO 14000

A

Set of quality control procedure that extends the concept of ISO 9000 series, identifying standards of environmental performance